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Us 13, California 13, Chicago 9, Sandy 7, Boeing 7, Nebraska 6, America 5, Napolitano 5, Ralph Peters 4, Nra 4, Nicole 4, Lance Armstrong 3, Lyric 3, David Keene 3, United States 3, Washington 3, New York 3, Pakistan 3, New Jersey 3, Hollywood 3,
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  FOX Business    Varney Company    News/Business.  
   Wall Street news. New.  

    January 17, 2013
    9:20 - 11:00am EST  

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and in spite of things you may read in some places, the great harlan howard wrote this song. ♪ god may forgive you, but i won't ♪ ♪ does jesus, but i don't ♪ ♪ they don't have to live with you, neither do i ♪ ♪ ♪ imus in the morning ♪
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>> from washington d.c. to notre dame university. we live in a culture riddled with hoaxes and deception, i am he' charles payne and this is no hoax. stuart will be back tomorrow. today here is the big story. immediately following president obama's big announcement on gun control featuring young children, the n.r.a. told its members to quote, brace for the fight of the century. there are serious doubts whether assaults weapons ban can pass in the house, more deception, a week after the transportation secretary said it would be safe for the boeing dreamliner, f.a.a. grounds all boeing dreamliners, and perhaps the biggest hoax of them all, the notre dame star, manti te'o, the story that captivated the story that she died, was he in on it and lance armstrong, ioc stripped him from medal from the 2000 games just for good
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measures. no lies or hoaxes here. here comes "varney & company." m twongs -- cook what you love, and save your money. joe doesn't know it yet, but he'll wk his way up from busser to waiter to chef before opening a restaurant specializing in fish and me from the great northwest. he'lstart investing early, he'll find some good people to help guide him, nd he'll set money aside from his first day of work to his last, which isn't rocket science. it's just common sense. from td ameritrade.
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>> so much for boeing's dreamliner being safe to fly. f.a.a. taking boeing's entire fleet of 787 peace out of service. they grounded them after incidents with batteries and one caused a plane in japan to make an emergency landing after a battery caught fire. how things have changed. here is the treasury secretary talking about the same boeing dreamliner. >> i believe this plane was safe and i would have absolutely no reservation of boarding one of these planes and take ago flight. these planes are safe. charles: ray lahood is the transportation secretary. nicole, let's go to you first, where is boeing in the pre-market. >> it's looking lower. and i understand ray lahood, i understand where he's coming from. when they make the planes, there
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are glitches. you didn't have the plane on fire or blow up. talking about different technical glitches. i hope it improves for boeing because it's four glitches in a week. it's not the good news, terrible pr, emergency landing, now they're all grounded. bad news and it's opening lower. charles: i've got to tell you, nicole, i could take a glitch, in a toy or a software program, i don't want any glitches in airplanes. >> i hear you. charles: liz mcdonald is here and liz, this is the same guy that told us don't drive those toyotas, remember when those acceleration problems and everything, but they come out immediately, you know, providing some form of cover for boeing out of the gate. >> i don't think-- what do you make of that, charles. i don't want a government official stepping in so deeply, making basically editorializing about things like that. charles: this is what some people might say, the president has a big stake in the auto industry and the auto comeback, particularly ahead of the election, listen, the government backs out of these auto loans,
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through the roof and if you can knock the competitive american cars down and maybe deliberately trying to stop americans from tying toyotas. the flip side, boeing is our largest exporter, it seems, don't drive this car, but fly this plane. charles: and some are reaching out. >> replace the lithium batteries, they cause fires in cell phone and laptops. >> and barack obama tells congress to pass an assault weapons ban and the national rifle association calls it the fight of the century and added 250,000 new members the pro gun organization now has well over 4 million members. and fbi says it's conducted 2.8 million background checks just in the month of december, that's a record. there's a nationwide run on guns, gun manufacturers in fact cannot keep up with demand. at the top of the hour, n.r.a.
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president david keeene, we'll have to ask him about the president's push for gun control. the results of the president's proposals ban on assault weapons, gone stocks surging yesterday and looks like a lot of them are up, we'll be watching them, when they open, that's next.
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>> we're about 15 seconds away from the opening bell. we were flat all morning until two pieces of data came out. housing starts significantly better than expected and initial jobless claims significantly lower than expected, two giant pieces of news, both of them fairly good and gave the market an oomph and you can hear the market opening and let's check the big board. dow should be up about 50 points here, give it a few minutes, believe me i think it will be higher. well, the boeing 787 dreamliner now grounded in the united states and nicole, we've got to start there. where do the shares open? >> it's down 2% right now. what we're seeing is that it's once again more issues for boeing and the dreamliner, so, now, just finally, that's it, the thing is grounded, keep working on it, no more glitches, fix it, darn it. we waited forever, a lifetime and a half for this thing. obviously, it's been a pr
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nightmare for boeing. i have to tell you, charles, looking at the week to date, the month to date, basically year 2013, the movement in the stock wasn't dramatic at all. prior to this morning's open, 1 1/2%, that's nothing. charles: now what, you know what it is, they've got one global competitor, not too bad. you know what? you don't want our next thing wait five years for the next airbus, kind of lofty to be in that position. this is no joke, it's a critical issue and a short time to get it fixed or the stock probably will take a hit. nicole, thanks a lot. president obama pushing for an assault weapons ban. here is what he had to say yesterday. >> congress should restore a ban on military style assault weapons and a 10-round limit for magazines. [applause] well, you know, i've got to tell you, all the talk of gun control has not hurt the stocks, these are up big in the last couple of
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days, and particularly yesterday as the president was speaking, liz. >> yeah, this is something about gun stocks and we saw that momentum pick up even when the president was elected. you have to wonder whether it's a momentum play and executive orders, what opposition in congress? >> i think also, behind all of this. despite the fact that the president reiterated yesterday, he's not against the second amendment. virtually almost everyone picking up the guns believes indeed that ultimately that somehow there's the second amendment will be challenged. >> well, yeah, the market is basically responding here. i think this is a bubble with a pin to be pricked into it, with these momentum plays and these gun stocks. i don't think they're going to last, the momentum. charles: right now no denying, they cannot keep up with demand. it's huge, wow. >> yes. charles: america seems deeply divided. in the next hour, david keene is going to talk about the president's announcement and how the nra has responded since sandy hook. that's at the top of the hour, you do not want to miss it.
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now to taxes and what we're calling many state by state tax revolt. five states are looking to eliminate state income taxes for people and corporations, they are louisiana, kansas, north carolina, oklahoma, and nebraska. if you wouldn't know it, the governor of nebraska, david henman is here and he's going to explain. thanks for joining us this morning. all of a sudden, did these states have the same epiphany or the same realization that there's only way to get the local economies going and that would be to change their taxes? >> well, i would tell you, charles, we have all looked at the economy that we're competing in, which is worldwide, and we know we need to be more tax competitive. i want to create more jobs in this state, our state, for citizens and higher paying jobs and the way to do that is to have lower income tax rates and corporate rates and in our particular case, i'm proposing the complete elimination of the income tax and the corporate tax rate. we do that by repealing some of
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the sales tax exemptions that we've granted over the years, we need a modern, simpler and fairer tax code. charles: i'm going to get to the fair issue in a moment, governor. but the basic premise that somehow this will spark the economy, obviously everyone doesn't believe that or that would be the program now. why would someone in your state who is worried about this, how do you convince him that this will indeed help the overall economy? >> well, i'm going to talk to him about the fact if you're working in nebraska now, all of a sudden won't be paying income taxes, that will help you. if you're a senior paying on your social security income that will be exempt. military retirement go right down the list, particularly for small businesses, they pay through the individual income tax so they would no longer be paying taxes. all of that is going to help us compete because when the company looks to expand or where they want to locate, they look at tax rates, and do you think they're going to locate in a state like mine where the income tax rate
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is 6.84% or in a state where it's zero? i think we all know the answer to that so we know we have to become more competitive. charles: governor, you've mentioned the word fair and at the same token you actually talked about taking out exemptions for sales taxes. now, one of the big problems that people with the scenario that you're talking about, they say that it's really a regress seive tax that the less money or less income people have, the harder it's going to hit them. so fair would be the last word you should use with this sort of proposal? >> well, i don't necessarily totally agree with you. i understand what you're talking about in terms of the regress e regressivety of the taxes, but we're not going to repeal the sales tax exemption for food that certainly would hit low income people. so depends how you classify it, how you make that determination, but i'm trying to make it as fair as i can and again, i've asked small businesses, what
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exemption do you get from the tax code, the current answer is none. lower income and give them a break on food and also utilities? >> yeah, we don't have a sales tax on that right now, as i recall. charles: okay. >> one thing i wanted to do here, this whole thing, all of a sudden, all of these states rul run by republican governors all with the same idea. beyond the obvious economic benefits that you point to, is there a message you're trying to send to washington d.c. about the fact that our economy is simply not growing? >> well, i haven't talked to the other republican governors, i think we all arrived at this independently. if there's a message i would send to the nation's capital, washington d.c., it's what i call a novel financial concept that we use in nebraska, they've never heard of there. we don't spend money we don't have and keeps us out of trouble every single day and they need to learn how to do it with their
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budget like we do with our family and business budget. >> that's true. >> you like that one. charles: that's novel. >> it is novel. >> the governor is putting out a picture in washington d.c. not spending money we don't have. nothing has more fiction than the tax code. my question, what's the reaction to the move here. >> the reaction in our state has been positive so far. the devil is in the details and i told nebraskaens we need a state-wi state-wide, they're not bashful sharing opinions with me. unlike the federal government we'll sit around the table and find a common sense solution and how do we make our state more competitive so we quit losing our young people to jobs in other states. i think we can do that and that's what i'm going to focus on. charles: governor, you mentioned workers earlier and i've studied this thing as well and one benefit to this that i see and not sure if it's politically correct to articulate it it motivates people to get off the
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sofa. there's a lot of people in this country who don't have to work because it's more attractive just to stay at home and reap the benefits, but the fact of the matter is, this could actually get people, particularly younger people that believe in the economy, to believe in capitalism, to believe in your state and to actually get up and hit the paveme pavement. >> well, i think that's a great way to look at it and i appreciate it, i agree he with you. i'm trying to create the opportunity for people to get a job, move into a good paying career. charles: right. >> i believe they strongly education is a great equalizer, but you've got to have a competitive tax system. charles: governor, obviously we're going to be watching it closely and it's a bold move that i think a lot of other states are going to follow. thank you for your time. >> thank you. charles: back to nicole, we've got to talk about the gun stocks from a different ankle. outdoor retailer, cabella, how is that doing? >> check out cabela, it's not a story frequent the minute i say
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it, the guys on wall street, hunting, fishing and gun sales as well. accounts for 10% of revenue. here is is a look today. up 1% today. of course they've been seeing the lines out the door over there. the stock has doubled in the last 52 weeks, about almost 100% the last 52-week, a nice one-week chart and we talked about smith & wesson and sturm ruger, you can see cabellas a big seller. charles: after sandy hook, stopped selling assault weapons, but that's a big play on this whole angle. we've got more fallout for lance armstrong, believe it or not, just two headlines today. first it's revealed that armstrong offered the u.s. postal service 5 million dollar payout to drop the fraud lawsuit against him and the second headline, the international olympic committee stripped him of his bronze medal he won in 2000. armstrong doesn't seem like he's going to rehab his image? >> that, too, and the department
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of justice is expected to decide this week whether to join the whistle blower suit against 41-year-old armstrong. this is what we're hearing out of media reports, whether or not he can restore his image via the oprah winfrey interview. >> that's not a magic bullet, they say a journey of a million miles starts with a first step. this is a journey of a million miles, it's a lot. i have the honors of doing the seven earlies, that's right, stuart, i'm going to do that. sony says we're ready to come back. the stock is down 50% from the 52-week high and nokia, a hot stock. and it's interesting, up this morning pre-market because they're laying off a thousand i.t. workers, doesn't jibe with the company coming back and new skin has been a mini herbal lifer, and the same business model and come out and said fourth quarter revenue and earnings per share well above concensus and black rock, talk about a juggernaut, this is up 500% and they beat the street
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this morning by 26 cents and ebay, another company doing well, and posted strong numbers, upgrades and they have their target to 62 from 54. cbs, brilliant move and they're going to turn the outdoor division and turning it into a billboard. and stock is up 11%. k-swiss i heard take over rumors 12 years ago and finally happened, stock is up almost 48%, those are your 7 early movers, one thing wholly ignored in this gun debate, the role of music, movies and video games. that's next, and we've got carol from chicago where gun violence is rampant. does she think an assault weapons ban is going to help her city? she's waiting for it. we're waiting for her, she's next. [ male announcer ] at scottrade,
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>> let's check on the big board now, up 32 points, not as robust an opening as we thought, right before the open. still no up arrows for the most part. check on the price of oil. oil has been in a big stealth rally. not a lot of people talking about it, but made a huge comeback and of course let's back to our big story on guns. joining us from chicago, business strategist and former investment banker carol roth and also carol will be heard on the radio as well. you know, carol, i heard chicago referred to as chi-rack. and the murder and gun violence seems to be out of control in your city. >> it's absolutely out of control. chicago has the dubious
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distinction as the murder capital of the united states right now. and i think what's lost in this broader dialog is that we're not focusing so much on the perpetrators, the criminals, all of the discussion seems to be focused on the methodology. i can tell you here in chicago shall the problem is related to the repeat offenders, to gangs and to drugs. it has nothing to do with assault weapons. most of these crimes are perpetrated with handguns, so, some suggestion that banning an assault weapon or even just to focus on something as simple as mental health is going to fix gun violence in chicago is completely preposterous. charles: i've got it tell you my son listens to a lot of rap music and consequently i get to listen to it, not old school, but the new stuff. the violent lyrics in the music points to a culture where taking a life is easy to do and here are from a rapper in chicago,
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pistol toting, killing these expletives, expletives, that they doesn't like. that's a song that made him a gigantic star and youtube right now, 20 million hits, kanye west version 20 million hits and the president didn't call up any rappers on this thing and music and videos weren't part of this yesterday. are they missing a golden opportunity not just to fix this thing, but save the lives of so many people? >> i think that it needs to be a cultural starting point. i think it needs to start in the culture and in the community, and there needs to be people, whether it's former rappers, whether it's the president. people who really carry a lot of weight and credibility need to step into this dialog and i think it's unfortunate that we continue to have the violent lyrics, i will say, charles, this isn't the first time. when we grew up, we had nwa, and we had a rappers and there isn't the accountability and there isn't the penalties they used to be.
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if you go into jail that you come back out, it's a badge of honor. there isn't credibility. charles: credibility, you actually get credibility to be in the rap game. >> exactly. charles: and the song i was referring to is guy little rich may be charged with murder any day now and so the credibility is there. and e-mac has a question here. >> e-mac here, as charles said. why wasn't hollywood mentioned yesterday in the president's moves with the executive orders and actions? listen, hollywood is in full force saying that listen, movies and videos and music, they do not influence americans, but i've got to tell you something, if that were true why are we spending 250 billion dollars a year annually on advertising if that doesn't influence americans? what do you make of that? >> well, i heard from the president one small mention of it, that when he was going to. charles: right. >> do the funding for, i think it was the national health center, one of those groups, that that was one of the things that they were going to study was the impact of video games and hollywood violence, but it's
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a small piece of the equation. >> carol, the bottom line, they really, really missed the opportunity yesterday and what the president proposed is not going to make a dent in your city. carol, we've got to leave it there. you know we love you, but we're he complete i out of time and pick up on it next time we see you. >> sound good, guys. >> time for the morning gold report. 1673, down ten bucks right now. and another on hoaxes and deception, the big story, notre dame star linebacker, manti te'o, celebrated for the personal losses, and a true fairy tale story that could all be made up. ♪ where could my baby be ♪ ♪ the lord took her away from me ♪ ♪ i'm going heaven so i got to be good so i can see my baby when i leave this world ♪
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>> well, continuing on your theme of hoaxes and deception or maybe file this story under crazy. notre dame linebacker manti te'o gained attention for on the field and his heart breaking story off the field and his grandmother and girlfriend died
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on the same day, six weeks apart and talking what the tragedies meant to him. yesterday, an article by dead spin shows that te'o's girlfriend wasn't real let alone dead, and saying that he was a victim of a sick joke. >> my head is spinning, i need a dramamine for in. why do they need to check social security records and school records to see if this woman existed. i don't understand what his role is in this? >> his role in it that he either was-- i don't know -- listen, people saying withholding judgment. i'm not going to withhold the judgment. the guy played it up. the problem, it wasn't good enough for lance armstrong beat cancer and come back in third place. it wasn't enough for barry bonds, 600 instead of the world record. it wasn't enough for him to be the best player on the team. it had be better.
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is that an indictment? the personal individual stories or just that we're a hero-worshipping country that craves the best stories? >> i think it's great that america loves heros, we have a derth of heros, is it addiction to being popular and famous? that's afflicting the young people today. charles: absolutely. thanks, liz. next, nra president david keene how his group has handled the gun debate since sandy hook. it's a "varney & company" news making interview, it's now at 10:00. what are you doing?
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>> i expect a full seat on the second amendment and the only way we will withstand this is to make the nra stronger than ever. we will face an unprecedented blizzard of assaults. is going to come hard and fast and soon. charles: the national rifle association vice president wayne lapierre on connell: late last year two weeks before the shooting at sandy hook elementary. i am charles payne. welcome to a special hour of connell:. "varney and company". and are ever-present david king will join us. this is the nra's first appearance on this program since sandy hook. president obama made his gun-control announcement yesterday, tens of thousands of
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gun owners stopped and watched from the big gun show in las vegas. and the nra released a letter to the people at the gun show calling this, quote, the flight of the century and also adding i warned you they would come and now it is here. it is not about protecting your children, it is not about stopping crime. it is about banning your guns, period. meanwhile the nra has added 250,000 members since sandy hook. according to u.s. news and world report bringing total membership above four million. year now, president obama addressing the nra's concerned yesterday. >> this will be difficult. there will be pundits and politicians and special-interest lobbyists publicly warning of the tyrannical all out assault on liberty. not because that is true, but because they want to generate fear or higher rating revenue for themselves.
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behind the scenes they will do everything they can to block any common-sense reform and make sure nothing changes whatsoever. charles: joining us is david keene. fight of the century. is that true? >> that is right. you have a president who is dedicated to achieving his ideological agenda, willing to spend political capital to fight the fight against public feeling and public attitudes that have been in place for many many years and to fight in spite of constitutional safeguards for those attitudes, you have a real battle royal. that is what we are going to have over the next few months because this president as you saw yesterday fired the first shot in a war that wayne lapierre was predicting last year. he is using the children to achieve an ideological agenda. his press conference wasn't about security for kids. it was about using and building
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fear for the safety of our kids to achieve that agenda. we were very disappointed by it. we were not surprised because it was what we expected and what we know we have to do battle over. charles: speaking of press conferences and expectations after sandy hook the nra went black for a while. the web site was taken down and there was no comment. there was a lot of building lapierre's press conference and a lot people thought would take on a different tone. it did not. it was sort of a tough one, in your face, wasn't conciliatory at all. the nra, a lot of fans among conservatives. the bigger question is could you be losing the battle among the general public? did public-relations battle? >> i think not. if you go back to wayne's press conference and what happened since we zeroed in on the causes of problems like what took place in connecticut and the causes are two things. one, we have a broken,
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devastatingly broken mental health care system in this country, almost every one of these people, these are not criminals, these are people who are literally crazy, people who should not have fallen through the cracks of our mental health care system. they should have been identified early on. it is interesting because in the aura shooting the only person, there were many signs the only person who acted on it was a gun dealer who refuse to sell the shooter gun because that guy is crazy. the fact is that is the root problem and the second problem, this is what parents were asking themselves after the connecticut shootings and what we were responding to, parents asking how do we protect our kids. we think that is where the administration has fallen down because they have used this as an excuse to achieve an anti-gun agenda they have wanted to achieve for a long time. it doesn't address the question, if you did all of the field good things they talk about, how would that prevent the next sandy hook?
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it wouldn't. we have suggested consistently that what we need to do is protect our kids, and given the fact that you can't as a practical matter predict when somebody who has really severe mental problems is going to break you need to provide security. when we suggested that, the establishment came back and said we were in sane and it turns out 28,000 schools have armed security. charles: there was a lot of common sense things put out there but it feels like more of again from a public relations aspect, beyond speaking to your core constituents it feels like maybe you guys are taking on a tax that is going to do more harm than good. give me an example. the president used kids yesterday. i call it despicable on the show but by the same token the nra brought up his kids and his school. does that go too far? the need to mention the president's kids when it comes to this? >> wasn't about his kids.
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was about affected his children and the children of the elites go to schools that have armed protection. our point is everybody's kids deserve to be protected. that is what their reaction was about. it was about how dare you suggest that we should spend government money to protect your kids, that is not in the cards. we think we should be addressing the question of providing protection for everybody's children. that is what it is about and what the american people want and incidentally every poll that has been taken since says that is the one thing parents want. i believe another network to a poll this week that shows more people agree with the nra position on that than anybody else. we are pleased that it is in fact hitting exactly what americans want. we are not doing it for that reason. we are doing it because as we look at it we think it is the right thing. charles: you are right with respect to that. people are warming up to the idea and you feel safer knowing
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there's a professional armed guard there. what about the cultural aspect of this? the president and the things he did yesterday, no mention of the movie industry or video game industry or music industry, a culture where young kids take each other's lives at a drop of a hat. is the white house missing the larger picture here? if so is it simply because they have targeted you as a conservative, right-wing organization? is this specifically about holding the nra down, removing the second amendment and not addressing real problems in this country? >> of course it is. if you listen carefully to the president's statement it is typical president obama. he positions himself as the only reasonable man in america with common-sense solutions to our problems and then suggests that the only reason those problems would not be addressed in the way he would address them is there somebody out there with a
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very dark agenda, in this case that would be us, the we don't represent anything except our own interests and we are especially tristan's part of the gun industry and all of this. that is a typical obama attempt to divide the country into two groups and try to make his the majority. i don't think that is going to work because our job is not to protect gun manufacturers. our job is not simply to protect our members. our mission and has been since 1871, is to make sure we protect the second amendment of the constitution. charles: before i let you go, yes or no, reiterating he was for the second amendment. does the nra stands by the idea that president obama will see abolish? >> yes. charles: we will talk to you again soon. we believe this will be one of the fights of the century. i want to interest -- introduce
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jenna diana, scott page, judge andrew napolitano is here and as always nicole petallides on the floor of the new york stock exchange. you heard the interview. what your thoughts? >> this -- the nra is way off. no one is trying to take away the second amendment or guns. they're trying to control something that is out of control. there's no reason for high-capacity magazines or assault weapons. i went on line with my i had last night and was ready to buy one. is ridiculous. there is already control in place what type of weapon we can have. moving that bar another step to control that might save lives and make a difference in this country we have to change. it is out of control and the nra is doing nothing but promoting fear and confusion. >> legislatively obama will have a hard time pushing these through with magazines, reinstating an assault ban rifle, have a hard time with democrats in the senate. a lot of democrats in very red states up for reelection next year will not want to support these policies. you made the key point.
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the nra in my opinion is often right on policy but delivery is off. they're not going to appeal to the general public using and had it utilizes the president the way they did. they need to reassess their strategy. if you are here to convince the public you are in the right you need to approach a little bit differently. charles: listen. you heard what scott had to say. if this is a giant problem and obviously it is, i don't think it is a gun problem of violence problem, cultural problem, can you really -- you mentioned we moved the bar a little bit. if you have a giant problem and move the bar a little bit isn't the president's so-called solution more disingenuous and not? >> the president is part of the progressive tradition in government, starting with the roosevelt and woodrow wilson. the progressive tradition basically says the constitution gives the government unlimited power. it can do whatever time demand
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and we know what is better for people than they know for themselves. witness obamacare. we will tell your doctor what medications and procedures to prescribe and give your doctor a laptop and make the doctor record on a laptop would you say to her and she says you and we have access to that information. that is why one of the executive orders yesterday federal law to prohibit doctors from asking patients about guns. who is the doctor for asking you whether you know have a gun? tell the doctor to take a hike of the ask you that but the executive order yesterday that said there is nothing to prohibit will be followed one day if the sentence stopped by an executive order that does your doctor shall ask you about your gun. the whole purpose of the second amendment is to enable people to protect themselves when the police can't or won't and to establish a residue of firepower in the hands of the public to fourth tyranny weather by giving it tiring second thoughts or whether by shooting at the tyrant which is how we can a
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country when we shot at king george. charles: you mention the second amendment. i want to play a clip from senator marco rubio and get your reaction. >> i think the president doesn't have the guts to admit it, does not believe in the second amendment although he said he is. these guys, the second amendment is in the constitution. i didn't write the constitution and needed to you. if he doesn't want the second amendment to be in the constitution or a few wants to reform the second amendment have the guts to admit that. judge napolitano: senator rubio is right. in an unguarded moment when he was senator obama heat mock religion and people who claimed done for security. that is an indication of his feelings about them. when it comes to a tradition the city of chicago which was so anti second amendment the supreme court of the united states, a two majority opinions to tell chicago you can't stop people from purchasing and keeping arms in their home. the president comes from that tradition and senator rubio is correct. charles: let's check the
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markets. last time we checked the dow was up 32 points and starting to gain fraction of 53 points right now. let's go to the stock exchange. ebay had a good number. how are those shares faring? nicole: ebay it is that are new multi-year high up about 3% at $54.52. they give a forecast for 2014 in line with analyst expectations but the latest quarter which included the holiday shopping season did very well for a couple reasons. they worked on customer service and such including free shipping, making returns easier. those are the factors that have been cited. the other thing we should note is rather explosive growth in mobile shopping so people are online and using their mobile units to go to ebay, using paypal, all good news. there's the ten year chart. the highs date back to 2004. charles: ebay is a juggernaut. we appreciate it.
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president obama using children to hammer his message on gun-control. we have to protect them he says. but next does the president's drone campaign go against his own message? the judge will stay with us to talk about that.
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charles: weekly jobless claims hitting below the level in five years showing a lot of improvement. the labor market, 335,000 people applied for jobless benefits for the first time, that number
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falling by 37,000, the lowest level since january of 2008. outgoing secretary of defense leon panetta waded into the gun control debate in a question and answer session yesterday. team made no bones about his support for president obama's proposal and noted he helped with president clinton in 1994's ban on assault weapons and says he supports that ban as well as a strict rule on armor piercing bullets. in a hostage situation still ongoing at d.c.'s oil spill in nigeria details are sketchy but it is being reported algerian airstrikes kill 34 hostages in 14 of their al qaeda captives. the algerian army attempting to take control. be right back. look, if you have copd like me,
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nothing can reverse copd spiriva helps me breathe better. (blowing sou) ask your doctor about spiriva. charles: you won't believe this. hospital in pennsylvania will stop delivering babies blues the obstetricians are leaving because hospital can't afford them. under the new health-care law they say they can't afford it and hospital delivered 250 babies last year. from obamacare to defense cuts million of dollars are wasted on defense spending every year. no argument there but is it the military's fault or congress to blame? , lieutenant colonel ralph peters always tell the like it is at least his version of it. we will find out. yesterday president obama using children to drive home his message on gun control. the president said we have to do all we can to protect the kids. >> i started getting a lot of
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letters from kids. four of them are here today, brand fritz, julia stokes, hannah is the hot and asia good. they are representative of the messages that i got. these are smart letters from smart young people. charles: does the president's drone campaigned against this message. the judge is here, judge andrew napolitano, fox news judicial analyst and author of many books, the most recent theodore and woodrow. the president -- judge napolitano: on page 276, varney. charles: i'm a little jealous. we will talk about that later. the president's furrowing campaign has killed so many innocent people. judge napolitano: looking at my blackberry because i want to give these numbers precisely. the numbers are from stanford law school in new york
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university law school. hardly hotbeds of defense of the second amendment and arguably intellectually honest researchers. the drone kills from june of 2004 to september of 2012, this includes the george bush ground and barack obama and pakistan alone killed between 2500, and 3300 people, between 475, and 884 were civilians and 176 were children. these are obviously innocent children. we know two of these children were americans. we also know the president never asked congress to declare war on the government or the state in the area where these drones hogan and we know his new secretary of defense is in favor of fewer troops on the ground and his new head of the cia like this drone program. we have a president who has not hesitated to kill foreign
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innocent children or american innocent children when they are in a foreign country. he loses great credibility when he stands with innocent american children and says i am going to keep you safe. charles: what do you think? >> i don't think the president's intentions were to kill children. stuart: charles: we know that is not his intention but if you got out this haphazardly and drop bombs indiscriminately out of a sky that is what happens. you hear some guy in a cafe and a crowded city so are other people around him. >> in any war there is collateral damage and in this case it is terrible innocent people -- judge napolitano: this is not a war. pakistan is an ally. we haven't declared war on pakistan. we have attempted surgically to remove people from a jurisdiction where we are friendly with the government and in doing so without authorization from congress or a declaration of war and in violation of the constitution he has killed americans.
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charles: i am a fan of drones to be frank with you but the president seems so hypocritical trotting out these children -- i hate to use -- i don't like to use them in the first place and that he put their names out to the public. doesn't it look hypocritical to talk about our number one goal as humans, as adults is to protect children? >> of course looks hypocritical and when it come to these drones where is the left? why is the left not hypercritical of the president? if this was a republican white house the left would be absolutely outraged. judge napolitano: that is a great question. i remember asking congressman charlie rangel about this, a classic liberal democrat who was furious that the president bombed libya instead of asking congress for authorization to do so. could have gone a declaration of war. he said to me he is our guy, he does so many things we like, these are couple guineas. this is destroying the constitution, destroying innocent human life because he happens to be an acceptable
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liberal in other areas you are going to zip your lip, shame on them. charles: charlie rangel must be on the way out. you can't dislike the judge. thanks. you would think the state seeing the biggest exodus from people just leaving in droves would be california. we talk about it all the time. we are going to tell you what the right answer is next. [ male announcer ] where do you turn for legal matters?
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>> i want to create more jobs in this state, our state, for our citizens and higher paying jobs, and the way to do that is to have lower income tax rates and corporate rates and in our particular case, i'm proposing the complete elimination of the income tax. charles: that was nebraska governor on his proposal to eliminate state income tax. nebraska is one of five states that is part of this new so-called tax revolt that we're seeing going on. time now for a check on the market. let's take a look at the big board. dow jones industrial average up 65 points. but not everybody is winning today. back to nicole on the new york stock exchange with william sonoma. nicole: here's the thing, when you look at it, you can see it down almost 5% today. that's not good if you are a shareholder and you see your stock plunging down 5.3%. it's a couple of factors, they had been cutting prices. they also gave a little wary outlook at one point.
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now when they lowered their outlook, now they were able to do well. so they did well on a lowered expectation. the other thing is that and we always talk about this in our control room in our group, are you willing to pay 30 bucks for a spatula? 40 bucks for a spatula? they have those sort of items that are quite pricey. their outlook seems like it's right in line. but right now we have the analysts jumping on board and sometimes these analyst calls can push a stock. goldman sachs and raymond james cut them. you do have the analysts now. goldman sachs cut them to a neutral from a buy. i don't know, is that where you go to buy your stuff? charles: i like the store, i have never really bought anything from there but it is a fantastic store. thanks a lot. according to the latest migration study from united van lines new jersey is the number one state people are leaving, hopefully for greener pastures, not california, we always talk about that on the company. joining us now is the leader of the new jersey assembly.
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john, listen, there's an exodus out of new jersey. what's going on? >> for ten years before governor christie took over, the democrats ran our state, they raised everything, property taxes went up. charles: that would explain the ten year exodus that we have seen from the census bureau and others but they are still leaving. >> they are leaving people because don't decide to leave next month, there was a process where people said we want to leave, they sell their house and they go. chris christie's turned that around. we have the slowest escalation on property taxes in 20 years now. you are going to see a reversal when people realize new jersey is changing. >> how do you think new jersey is going to be able to compete with states though that are now talking about eliminating the state income tax? that's very sort of encouraging to people like me. i want to sort of run over there. if i could move over there today, i would, louisiana, they are talking about this, how are states like new jersey and new york going to compete with that >> the governor proposed an income tax reduction. the democrats haven't passed it.
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the northeast there's a lot of options for jobs, opportunities are great but people don't want to pay the high taxes that's why this governor has been so effective with the republicans in the legislature changing the scene in our state. i think we're going to make that move. >> i think we're also seeing more people moving into new jersey where you're making new millionaires, and there has to be a lot of buzz and excitement with you getting the super bowl in 2014. >> we like the super bowl coming. we also created private sector jobs. 75,000 new private sector jobs since its governor taken office. we have reduced government jobs, and that's a trend. governor set an example for the nation, no question about it, we're on the move. i can guarantee you that. charles: all right, well, but here's the problem, though, and it's been brought up, competition against these other states, you know, i mean, you talk just now about slowing, you know, taxes and things like that, not reversing them, not taking them off the table. i live in new jersey. it is -- you know, by the time,
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you know, uncle sam gets me, you know, and then jersey takes their cut, it's hardly -- it's devastating. can the city -- can the state rather survive or has it gone past? in other words, can it survive, can it change its tax policies the ones you talked about, because states become addicted to that kind of money coming in? >> we've already done that with 2% property tax cap as well as this slowing of property tax, but you say reversal. first, you have to stop the bleeding, which the governor and actually on bipartisan basis we have done that. charles: how do we heal it? real quick. >> well, we put caps on arbitration, meaning that you can't have public employees getting 7% raises. we've done that. and also it's a special place to live. you may want to live in other parts of the nation, we have a lot of opportunities in new jersey, a lot of creative places to go right in jersey. charles: all right. thanks a lot. we appreciate it. >> thank you. charles: so you don't think you're going to let california off the hook, do you?
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not while the gun debate is in full swing, people may be jumping ship from the formerly golden state because of guns. that's next. can your hearing aid do this?
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millions of them, to universities. the goal is to have 195 million chinese college grads by the year 2020. but with the slowing economy, it seems they are going to have a whole lot of kids on their hands with big expectations and little opportunity. sounds familiar. let's get back to the markets. it's been a great year of the great migration, and what that means is people are moving out of bonds into stocks. we have a trader with us. joining the company now from chicago, the great migration, are you buying into it? >> there are a couple of factors that start to cue it up here if you want to preface that statement. you are finally starting to see the ten year bond yield up to 1.87 so it's made quite a move in yield. if you want to look at a chart in the s&p and five year monthly chart you will look at a pretty bullish chart. for that reason besides the great pullback we saw in 09 and again at a support level in 10, the stock market and particularly the s&p 500 looks really good.
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i think it is going to stay in line, at least test 1600 sometime over the next year. charles: i've got to tell you, mike, the great rotation, migration, whatever you want to call it, eventually it will happen and this could be the year. we appreciate it, man. thanks a lot. >> always. charles: california versus texas big government or individual freedoms. it is a topic of john stossel's show tonight. listen to this. >> the showdown between two states, texas versus california. which is the better place to live? charles: john stossel is here. john, a big difference between california and texas. in a lot of areas, but the topic of the show has been guns. let's focus on that. >> i don't know how many people moved out of california and went to texas because it's easier to buy guns. charles: but is it easier? >> yes, much, also you don't have to have a motorcycle helmet and you can talk on your phone while you are driving a car. charles: can i strap on a rifle and get on a harley? >> no rules in texas. just the federal rules, so you have to have the background check. but in california, ten day waiting period.
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you can only buy one gun per month. they've passed 45 gun control laws in the past 23 years. and yet, murder per capita, about the same as texas. a little worse actually. the story of it is these laws work, but there's less regulation in texas. charles: is that the underlying theme of your show tonight, that texas is freer? >> yeah, no income tax, there's more job creation. in one way texas is worse. they're more likely to confiscate your property. it's nice that we've got 50 states that are laboratories of democracy and if you don't like your state, you can move. charles: it is pretty obvious that people are moving. they don't like california. they don't like what california has become. and texas happens to be a bright shining light for them. >> year after year until 1990, almost three times as many
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people as average moved in to california. it was the place to go. stopped in 1990. last decade they lost 2 million people. texas gained half a million -- texas gained half a million. charles: i remember in the democratic convention they said texas would be a blue state at some point, but with all these people coming in, from the political angle, isn't it an attractive place for political conservatives who really -- who think perhaps this is the state that probably best mirrors the constitution still? >> yes, i think alaska -- charles: it is a little older in alaska though. >> here people come up to me on the street and say i hope you die soon and in texas they love me. and i'm a libertarian, not even a conservative. there's certainly a big difference. in austin it is as liberal as new york city. charles: austin is, you know, a lot of universities and things like that. the intellectuals live there.
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so the freedom -- >> how can they be wrong about so much and still be called intellectuals? charles: that's a good point. that's called great branding, isn't it? back to the whole thing, though, california versus texas. what's the overarching story? in other words, what's the moral of the story for all of us? >> the moral of the story is what makes people's life better is if you have opportunities. and lack of regulation provides that. in houston they don't have zoning. the housing is much cheaper. it is easier to start a business. i mean it's not perfect. you may get a big ugly place next to your house, but it's that freedom to try. charles: yeah. >> you know, charles, i have a suspicion that a lot of liberals, even though they won't admit it, also leave california and move to texas for some of those benefits. and politically that might sway the way the country looks in the next election or two elections after. if you have some of those closet liberals going and saying you know what? i don't want to pay these high taxes i don't want them telling
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me what to do e then though i will -- even though i will keep voting the democrats in. i may move over there. i don't know how that might turn out. >> i think you can't have a southern california lifestyle in texas. i'm of the opinion we need regulation and guidance. every time there's been a business or opportunity where you have released regulation, there's more havoc that happens. people need guidelines and need square edges on how to live their life and how business is run. texas is one of the most relaxed states when it comes to security violations. charles: that's what this show is all about tonight. americans are flocking to texas. can't wait to see it tonight stossel fox business 9:00 p.m. eastern time. you taxpayers spend billions every year, millions are inevitably wasted, but who is to blame for all of this? congress? we're going to ask lieutenant colonel ralph peters. he's next.
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charles: well you might say housing is back. in december builders started work on homes at the fastest pace since the summer of 08. and finished 2012 as the best year for home construction since the housing crisis began. the commerce department says december housing starts were up more than 12% compared to november. and nearly doubled from the recession low in april of 2009. a couple of big misses on bank earnings today. bank of america's fourth quarter profits plunged 63% year over
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year. the bank giant was weighed down by foreclosure settlements and billions in charges related to dispute with freddie mac. citigroup also missed on earnings seeing growth year over year that was really light, but said legal expenses really hurt them in their bottom line. both stocks trading well to the down side. a situation going on at an oil field in nigeria. right now the u.k. is saying the nigerian army is trying to contain -- we understand the cos of a complex, global economy. it's just one reason over 75% of our mutual funds beat their 10-year lipper average. t. rowe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing.
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charles: america's top military chiefs have spoken. they wrote a rare joint letter to the senate warning against military cuts. quote, from the current budgetary uncertainty we are at great risk -- >> fox news strategic analyst and an author, colonel ralph peters is joining us now. colonel peters, sequestration is going to be one of the big battles in washington, possibly gigantic cuts in the military. many people are saying that we eventually have to do this, it appears maybe from this letter though that these generals are against that. >> well, first of all, the defense department has to accept that in an age of not enough money, the defense department is going to have to -- the military services are going to have to make some cuts, some trims.
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ultimately willing to do that, they recognize reality. the problem is that the chairman of the joint chiefs, the service chiefs, don't have a budget in the sense of a corporate budget. they propose a budget to congress. congress cherry picks it and congress funds specific programs for specific amounts, and they cannot move money between accounts. why is this a problem? it is a problem because despite all the talk from congress left and right about how patriotic they are, they don't vote for a strong military. they vote for jobs and companies in their home district. i mean, even on the left, look, nobody from washington state is going to vote against funding. so what the joint chiefs are worried about is that congress will continue to fund the programs that benefit their home districts while the military takes a terrible hit. charles: so what you are
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suggesting then is that maybe it's not the generals who want all of this spending, but it's actually congress or lawmakers who are trying to get as much pork as possible for their constituents. >> absolutely. there's an enormous amount of pork in the defense budget. but the mission of the service chiefs and the chairman of the joint chiefs is to keep a force in readiness. now i joined the army as a private in 1976 after vietnam. i don't ever want to go back to that hollow force. we couldn't get spare parts. we didn't have enough fuel or training ammunition. we were using second world war vehicles in the 1970s in germany. and so what i am arguing for is really more daylight on all this, because if we're going to make cuts, and we are going to make cuts, we need to take care, protect real military capabilities and not just protect favored defense contractors. and that's tough because congress ultimately doesn't care
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about private joe or sergeant rock, they care about their home districts, that's the way our system works. charles: as you were talking, i'm thinking of maybe a very controversial program, ultimately when we do these cuts that you say are inevitable, what's get cut? will it be decided on who has the highest rank in congress and not necessarily who has the highest rank within the military? >> it is going to be decided largely by which defense contractors, which defense contracting giants have the most clout. lockheed martin, they just sold us the most expensive fighter in history, the f-22. we've had it in inventory almost a decade. it's such a mess it's not been able to fly a single combat mission, even though it cost 350 million dollars a copy. so what was the penalty for lockheed martin? they've been awarded the largest
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fighter aircraft deal in history for a new aircraft, the f-35. it's deeply troubled. the software is a mess. can't fly properly. it has short negligible range, it wouldn't be useful at all against china, can't carry many bombs, but because lockheed martin owns it, owns the project, you can't kill it. the problem is congress will not kill trash weapons that don't work and who pays the bills? charles: you know what? the scenario that you're painting then seems like we're going to be stuck with the junk and when these cuts do come, they are going to hurt individuals and not the big corporations. >> right, we need to focus on killing power, not spending power. charles: colonel ralph peters, we appreciate it. we will have you back real soon. you know, it is a bad sign for the economy when people are taking cash out of their 401(k)s before they retire, but, you know, we're living longer, that makes it even worse, does the
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charles: your 401(k), your nest egg, not supposed to touch that, well, new studies show that more
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than a quarter of americans are dipping into those accounts to pay current bills. on top of that, of course, people are living longer, so scott page, we want your thoughts on this. >> you know, it's the good news bad news for this country. yes, people are living longer, but the bad news is how we're going to pay for it. you know, i think tapping into your 401(k) needs to be the last resort effort of all efforts. but there's other options that people never talk about. you know, first there's reverse mortgage. as long as the consumer is aware of that -- charles: people hate reverse mortgages. >> because they don't understand them. it is a consumer education problem. the second which is completely not talked about and the insurance industry hates to talk about it is what's known as a life settlement, a senior can sell their existing life insurance policy to help fund their retirement. people need to think outside the box and consider these options. i would caution anyone to use their 401(k) unless it is a last-ditch effort. charles: use your house, the reverse mortgage which is a little different than a home equity loan. could you call it that?
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>> that is a loan. one of the problems we run into with consumers of reverse mortgage almost 70% of the consumers take all the money up front meaning they don't save enough money to pay for the insurance and taxes. then the lender ends up forclosing and taking the home away. another problem with reverse mortgages is there may be a 70-year-old and 80-year-old they will get the reverse mortgage on the 80-year-old because they get a lower rate and then when that person
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[ male announcer ] where do you turn for legal matters? maybe you want to incorporate a business. orrotect your family with a will or living trust. and you'd like the help of an attorney. at legalzoom a legal plan attorney is available in most states with every personaled document to answer questions. get started at legalzoom.com today. and now you're protected.
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